Telecommunications Companies That Must Register with the Michigan Public Service Commission
Telecommunications companies that fall under this umbrella must register with the Michigan Public Service Commission:
- Incumbent telephone companies providing local service
- Local toll service providers
- Competitive local service providers
- Competitive access provider
- Interexchange carrier
- Operator Service Provider
- Payphone provider
- State-to-state long distance providers
- Broadband over power lines
- Wireless service providers (fixed and mobile)
- Resold long distance providers
Some of these carriers are required to file tariffs. Telecommunications tariffs must be filed electronically using the E-Docket system. Tariffs are also required to be listed on their business websites. New tariffs or revisions should be sent to email@example.com.
Tariff filings are reviewed by the Telecommunications Division and stamped when complete. If there are issues, the point person of the business will be contacted.
Local Exchange Carrier Tarrifs
All local exchange carriers must have a CLEC license issued by the Commission to file a new local exchange tariff. Before a telecommunications company can do business, the tariff filing must be listed with the goods and services offered and the exchanges where service will take place.
Competitive Access, Interexchange, and Additional Tarrifs
CAPs and IXCs must have tariffs filed based on the electronic requirements outlined by the MSPC. These providers must also register with the Intrastate Telecommunications Service Provider (ITSP) registry based on Section 211a of the Michigan Telecom Tax Act.
The Registration Process
To begin, a company must be licensed and registered with the Michigan Department of Licensing and Regulatory Affairs. There are three ways to accomplish this: online, by mail, or in person.
- A Federal Employer Identification Number (FEIN) must be obtained, and annual filings must be recorded to continue doing business in the state.
- To register the telecommunications company as a provider with the MPSC, the Federal ID number is needed.
- The company must be prepared to register the names, addresses, email, phone, and fax numbers of all officers and a point person for questions.
- If there are any DBA’s they must be listed.
- The company should be able to provide an authorized agent and have a specific, detailed description of the services provided in the state.
- It is highly recommended to register via the online site. A confirmation page that can be printed is available when registration is completed.
The registration process can be confusing. FAStek helps with market entry services, assisting with obtaining certifications, registrations to the FCC, and international registration. For companies that have multiple locations but need registered agent services in Michigan, we can assist.
Any transfer of ownership should be communicated during the renewal period.
Renewal for Michigan Telecommunications Companies
All telecommunications providers must register on an annual basis with the Michigan Public Service Commission. Reporting deadlines for carriers are listed below:
- January 15 – payphone, OSP
- February 1 – intrastate telecommunications service providers
- April 1 – telecommunications relay service annual report, lifeline telephone assistance annual report, certification of compliance with Lifeline
- April 30 – Gross revenue amount for previous calendar year
- June – ETC
All carriers will be notified of upcoming dates as they relate to their specific business.
The validity of Sales Tax Licenses is from January through December of the current year. Out-of-state sellers are required to remit sales or use tax on sales if there is nexus on the part of the seller under amendments to the General Sales Tax Act and Use Tax Act.
Michigan Telecom Tax Exemptions
Telecommunications companies are not exempt from sales tax, but certain retailers may be. They have to complete form 3372 – Michigan Sales and Use Tax Certificate of Exemption. The sales tax license number must be included.
How to File a Voluntary Disclosure Agreement in Michigan
A Voluntary Disclosure Agreement (VDA) can help businesses that have failed to pay their taxes with an opportunity to make things right. Failing to pay Michigan sales tax can result in additional fines, fees, or criminal charges with the Michigan Department of Treasury.
Businesses seeking a voluntary disclosure agreement have several steps to take.
- To qualify, the business must not have previously filed a tax return for the tax periods that began after December 31, 1988.
- The business must have a filling responsibility under the nexus standards after December 31, 1997, or the business must have a reasonable basis to contest liability for a tax or fee under the Revenue Act.
- The business must not be under audit by the Department of Treasury or under investigation. The business must also not be part of any civil action or criminal prosecution regarding negligence of tax paid.
- There must not be prior contact from the state to the business before agreeing.
- The Department of Treasury takes a lookback period into account.
- Under the agreement, the lookback period is limited to four years without penalty but must comply with all additional tax requirements and payments.
- The written agreement will be between the business and the Department of Treasury.
- Any violations from the business in terms of the agreement will negate all settlements.
Form 4133, the Voluntary Disclosure Request and Form, 1353 Nexus Questionnaire should be sent to the Michigan Department of Treasury, Discovery and Tax Enforcement, P.O. Box 30140, Lansing, MI 48909-7640.
Streamline Your Regulatory & Compliance Efforts
FAStek provides full-service tax compliance, including all federal and state regulatory reporting. We have an entire department that assists with all regulations and tax compliance. What can our clients expect?
Our team helps develop a strategic compliance plan to ensure your taxes are tailored to meet the current regulations while keeping your reports and filings on task.
The client journey includes:
- Sales engagement
- Program execution
- Ongoing account management
Conquer Michigan Telecom Tax Requirements Once and For All
Businesses that require assistance in registering, reporting, recording, or managing their Michigan tax issues can feel confident working with the FAStek team.
Our experienced agents have worked with various telecommunications companies in Michigan, lending their expertise to help conquer their communications tax once and for all.